THE FINANCIAL CONSEQUENCES OF THE PLAN
A summary, in broad terms, of the improvements in the working results of British Railways which it is estimated will result from the measures and proposals described in the plan is given below. Some of the savings would be more direct, immediate, and calculable, than others, but where ranges are shown they give a rough indication of the measure of uncertainty.
To a large degree, proposals included in the plan are interdependent. Condensation of the system, elimination of uneconomic services and traffics, reduction in rolling stock, through-train working at the expense of wagon forwarding, the build-up of traffic on the main route network, and reduction of administrative expenses, are all closely linked. Therefore, realisation of many of the savings depends upon adoption of the plan as a whole. If the plan is implemented with vigour, however, much (though not necessarily all) of the Railways' deficit should be eliminated by 1970.
It is also important to realise that the elimination of cost factors will exceed the net savings expected from the various changes, and this will reduce the vulnerability of the Railways to further cost increases. At present, increases in the costs associated with the large volume of hopelessly unremunerative activities progressively undermine the potentially good railway services.
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Estimated financial improvement of the order of £ m. per annum
Discontinuance and rationalisation of stopping passenger services and closure of stations to passenger traffic (after allowing for loss of contributory revenue)
Subsequent closure of lines and reduction from passenger to freight standard of maintenance of other lines following the withdrawal of services and closure of stations
Discontinuance of local freight services and closure of stations to freight traffic (after allowing for the preservation of potentially good traffics by alternative arrangements) T T Direct savings arising from closures ..
18 11-13 " 5-10 34-41 Reduction in the fleet of gangwayed passenger coaches by the withdrawal of the stock reserved for peak traffics (after allowing for some loss of earnings)
Reduction in the fleet of wagons
Rationalisation of workshops—reduction in standing charges (apart from the effect of the fall in work load)
Continued conversion of steam to diesel traction
Reduction in the expenses of working coal traffic by— (a) the establishment of coal concentration depots in collaboration with the National Coal Board and the distributors, and
(b) increased movement of coal in block train loads following the provision of train loading facilities at collieries 2-3 10-12 4 15-20 7-10 54
امعة
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